Unpaid business insurance 3 yrs later

[Jkg]

I have two business policies with my insurer and they’ve just informed me that in 2019 the direct debit that they set up only covered one of the policies and they are asking me to pay the second policy from 3 years ago.

I am still with them and have both policies and obviously have never claimed against either.

 

Am I liable for this even after so many years?

[mantis shrimp]

you might be; but you might ask the broker or insurer to explain this in full and to account for their error. 

[Jkg]

Thanks

what do you mean by ‘account for their error’

they have admitted that they slipped up

regards

jkg

[mantis shrimp]

I am thinking of of getting them to own their mistake and take responsibility for it, or at least reduce the amount you are being asked to pay. 

[stu007]

Hi

 

The issue here is that Business Policy although a claim was never made over the 3 yr period that policy was still live on there systems but due to their Maladministration the Direct Debit for that second Policy was never set up by them.

 

1. As no payments were made against that Policy IMO that Policy would be Void by the Insurer and any Claims refused due to NON Payment.

 

2. If they tried to Claim against that Policy during that 3 yr Period as No Payments were made against that Policy IMO that Insurer would refuse any Claim due to NON Payments of the Policy and at the same time Void that Policy.

 

3. This is a serious Maladministration by that Insurer and how it has taken them 3 yrs to realise this error is astounding especially for the reasons mentioned above.

 

What you also need to see for yourself is how this Maladministration error by them happened.

 

So I would advise sending them a Subject Access Request (SAR) for both Business Policies from the Start date to date and that you require 'ALL DATA' that simple phrase covers whatever format they hold that Data in whether it be emails, written correspondence, recorded phone calls etc.

 

They then have 30 Calendar Day to respond and that Time Limit only starts once the acknowledge receipt of your SAR Request. If they ask for proof of ID this will extend that Time Limit until they verify your ID.

 

[unclebulgaria67]

If you have had peace of mind in having Insurance and want to be covered against any potential risks identified as having started during the policy period, then yes you should pay the premiums due.

 

As pointed out, if you don't pay, then you won't have the Insurance cover as it will be cancelled.

 

Having dealt with many similar issues previously for an Insurers, they will usually negotiate a good discount, due to their error.  So ask for a significant discount, as they are billing you for 3 years Insurance in one go.

 

 

[mantis shrimp]

Uncle B is right. Does the OP want to have been uninsured to whatever extent for the period? If, for whatever reason, a claim is made arising from events in that period, will current insurance respond to the claim?

 

As to SAR, this would be for personal data held on an identified individual. So what is the structure of the OP's business? SAR may work if OP is a sole trader. 

Edited February 8, 2022 by mantis shrimp

[Jkg]

ThAnk you both

Stu007

one area that I may have confused you with

the policies were both started 3 yrs ago,

the failure to collect the direct debit for one policy was only for 2019.

2020, 21 and 22 were paid and collected correctly.

They have now discovered the error and want payment. Does that change any of your advice ?

regards

Plus it is a limited company 

[mantis shrimp]

At the time, did you check the amounts being taken by direct debit? 

 

What about when the correct amount was being taken the following year? 

[Jkg]

ThAnk you both

Stu007

one area that I may have confused you with

the policies were both started 3 yrs ago,

the failure to collect the direct debit for one policy was only for 2019.

2020, 21 and 22 were paid and collected correctly.

They have now discovered the error and want payment. Does that change any of your advice ?

regards

As it was a direct debit no I didn’t check and just paid the bill

The next year I paid upfront in one lump sum just because it was easier and the accounts would allow it